BlackRock Q1 Profit Rises to 2.21 Billion on ETF Inflows

BLACKROCK INC reported a significant rise in first-quarter profit on Tuesday, driven by robust inflows into its exchange-traded funds and a surge in performance fees. The asset manager's results sent its shares up 2.8% in pre-market trading, reflecting investor confidence despite broader macroeconomic pressures and global geopolitical tensions. The company's active ETFs have successfully attracted investors looking to capitalize on market dispersion through low-cost products. Total net inflows for the first quarter reached $130 billion, with the majority directed toward iShares ETFs. This strong performance helped the firm's assets under management (AUM) reach $13.89 trillion, a notable increase from $11.58 trillion in the same period last year. Expansion into private markets has further fortified the company's position, with the segment drawing $9 billion in inflows during the quarter. These alternative investment vehicles generate higher yields and trigger performance payouts even when the broader market is volatile. Investment advisory performance fees spiked to $272 million in the first three months of 2026, compared to $60 million in the year-ago period. For the quarter ended March 31, the company reported a net profit of $2.21 billion, or $14.06 per share, up from $1.51 billion, or $9.64 per share, a year earlier. While the quarterly results were strong, the company's shares have declined 4.4% so far in 2026, underperforming its smaller peer STATE STREET CORP. This decline occurred as the broader S&P 500 index lost 4.6% in the first three months of the year.